"Our sense is some investors may have concluded that deal flow may take a bit of a breather in the near term based on CEO Sean Healey's comments on the 4Q10 conference call," Kim wrote. "By contrast, we remain confident new investment activity will remain strong this year and beyond."

Pointing to AMG's $300 million-plus cash on hand, $750 million credit facility and potential incremental leverage, possibly in the form of senior convertible
securities, he wrote: "We think investing $500 million to $1 billion per year seems reasonable."

He added: "The deal pipeline has 'never been stronger,' with poetential affiliates spread across an outsized and diverse set of high-quality franchises."